As Finance Minister Nirmala Sitharaman prepares to unveil Budget 2025, there is a strong consensus among investors and the startup community on the need for reforms that streamline tax compliance and incentivize sectors such as AI, electric vehicles, and music tech.
Stakeholders in the startup ecosystem are also calling for policies that make it easier to access capital and navigate intellectual property issues, all while empowering the growth of India’s dynamic creator economy.
Read the expectations in detail:
Raja Singh Bhurji, CEO and Incubation Director of The StepUp Ventures
The government’s commitment to accelerating startups has been evident in recent years. The Union Budget 2025-26 is poised to further strengthen India’s startup ecosystem, a vital driver of economic growth and innovation. Key measures, including a focus on emerging technologies like AI, IoT, and quantum computing, can foster a supportive environment for entrepreneurship. Simplifying the tax system and enhancing domestic venture capital competitiveness will attract more investors and fuel growth.
Additionally, easing compliance burdens for early-stage startups will offer much-needed flexibility. We are optimistic that Budget 2025 will bolster the EV ecosystem by increasing incentives under the FAME-II scheme, lowering GST on EV components, and promoting localized manufacturing of batteries and charging infrastructure.
Gaurav Dagaonkar, Co-founder & CEO, Hoopr
Last year’s budget introduced several encouraging measures for the startup ecosystem, such as the extension of tax benefits for startups, a focus on developing digital infrastructure, and the establishment of a ₹1 lakh crore corpus for low-interest loans to startups. Building on this momentum, I am eagerly anticipating the upcoming Union Budget.
For music-tech startups like ours, initiatives that further simplify and strengthen intellectual property regulations, provide access to affordable capital, and incentivize innovation in areas like AI and music technology will be crucial. We need a policy framework that not only supports the growth of India’s ₹10,000 crore creator economy but also fosters responsible innovation and empowers creators to thrive.
I am hopeful that the upcoming budget will continue to create a conducive environment for the music-tech sector to flourish and contribute significantly to India’s economic growth.
Maninder Singh Nayyar, CEO & Founder, CEF Group
The Union Budget 2025 is a crucial opportunity for the Indian startup ecosystem to gain the momentum it needs to thrive. Startups are the backbone of innovation and the right support—be it through extended tax holidays, simplified compliance, or better funding access—can make a world of difference.
For startups in the sustainability space, like ours, the stakes are even higher. These ventures are tackling some of the most pressing challenges of our time, from renewable energy to waste management, and need tailored incentives to scale their impact.
I believe targeted measures for research and development, along with a push for streamlined processes, can unlock immense potential for startups across sectors. If this budget focuses on sustainability and innovation, it won’t just help startups grow—it’ll help build a better future for all.
